Nicola Mining Inc. (NASDAQ: NICM) (TSXV: NIM) (FSE: HLIA) announced that an independent underground inspection of its Treasure Mountain Silver Mine in British Columbia found the mine in generally better condition than expected after roughly 13 years of inactivity. The assessment, conducted by McElhanney Ltd., an independent Canadian engineering and consulting firm, indicates that both principal portals remain accessible, significant portions of underground development are open, and natural ventilation is functioning. Much of the historical infrastructure is still in place, with no observed conditions that would prevent the project from advancing to the next stage of evaluation.
The findings could expedite the timeline for recommencing mining activities, as the company evaluates reopening the mine in 2027. The inspection also identified accessible underground drill stations, partially developed headings, unexplored areas, and potential unprocessed material that could provide exploration opportunities. Nicola plans to advance a detailed geotechnical and rehabilitation assessment, followed by surveying and mapping, to support subsequent mine planning, ventilation design, rehabilitation, and the recommencement of mineral extraction.
CEO Peter Espig emphasized that the existing underground development, combined with Nicola’s permitted Merritt milling infrastructure, could provide a disciplined and capital-efficient pathway toward renewed silver production. This is particularly significant given the mine’s history and the current market conditions for silver, which is used in various industrial applications and as a store of value.
The Treasure Mountain Property includes 30 mineral claims and a mineral lease, spanning an area exceeding 2,200 hectares. The company also owns the New Craigmont Project, a high-grade copper property adjacent to Highland Valley Copper, Canada’s largest copper mine. Nicola’s fully permitted mill can process both gold and silver mill feed via gravity and flotation processes.
The positive assessment suggests that the company may avoid significant capital expenditures typically required for reopening long-idle mines. The presence of accessible infrastructure and unexplored areas could also offer near-term exploration upside, potentially adding to the mine’s resource base. With the expected timeline of 2027, Nicola is positioning itself to capitalize on silver demand while maintaining a cost-efficient approach.
Investors and stakeholders will be watching closely as Nicola progresses with the detailed assessments. The company’s ability to leverage existing infrastructure and the mine’s condition could set a precedent for other junior mining companies looking to restart operations in a capital-constrained environment. For more information on the full press release, visit https://ibn.fm/HdSg9.
